Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Continuing High Demand for Banking Ombudsman


MEDIA RELEASE


8 NOVEMBER 2012

Continuing High Demand for Banking Ombudsman After 20 Years in Business

The Banking Ombudsman Scheme is as important as ever in the banking landscape, despite the industry becoming increasingly attuned to meeting the needs of modern customers, says Banking Ombudsman Deborah Battell.

The Banking Ombudsman Scheme today released its annual report for the 2011/12 year, marking 20 years of dispute resolution in the financial services sector. The scheme was New Zealand’s first voluntary industry-based Ombudsman, established by the New Zealand Bankers’ Association to provide an independent and impartial alternative dispute resolution mechanism for the banking industry and its customers.

Over the last 20 years, the scheme has helped over 62,000 customers, resolved around 20,000 cases and facilitated $36.9 million in compensation. In 2011/12, case-loads remained at historically high levels, with disputes – where banks and their customers have reached an impasse, or where they are simply looking for an independent view – increasing by 20%.

Ms Battell says the banking industry has changed dramatically since 1992, and continues to evolve as new technologies emerge. The types of complaints received have reflected industry developments such as new banking products and services, as well as economic conditions.

“For example, cheque-related cases made up 21% of our caseload in 1992/93, but only 3% this year. Credit card cases also peaked around 2001, but have since fallen back, reflecting banks’ ability to resolve these cases themselves and greater customer familiarity with the way that credit cards work,” says Ms Battell.

“More recently, since the global financial crisis, many of the cases we have investigated have involved complex investment products as well as the lending-related issues that accompany financial hardship. It’s clear that some customers did not understand the risks and benefits associated with fixed term lending.”

Problems of miscommunication are a theme in complaints to the Banking Ombudsman. “Many complaints continue to reflect mismatched expectations” notes Ms Battell. “Banks can help avoid complaints by setting more realistic expectations of their service, and by providing customers with better and more readily understandable information. Customers can avoid problems by asking questions, reading their contracts and ensuring they fully understand what they are signing up for.”

What has remained constant for two decades is the need for an independent arbitrator to help lift industry standards. “Customers tell us they want an independent view and that is exactly what we can give,” says Ms Battell.

The Banking Ombudsman looks forward to continuing to provide high quality dispute resolution services for the benefit of customers and financial institutions, and to highlighting emerging financial issues for the public.


ELECTRONIC VERSION

The Annual Report is available online at www.bankomb.org.nz/About-us/Annual-reports

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news